With the current funding, Pepperfry has raised a total of over Rs1,200 crore since its launch six years ago. Photo: Pradeep Gaur/Mint
Mumbai: Online furniture marketplace Pepperfry has raised Rs250 crore in a fresh round of funding from State Street Global Advisors, the asset management unit of State Street Corporation.
The funds will be deployed to strengthen the supply chain of the company, double the number of experience centres and invest in developing augmented reality technology. “We operated one of the largest big-box supply chain networks in the country, servicing over 500 cities and towns. We will use the funds to sharpen deliveries, especially non- metro towns,” Ambareesh Murthy, founder and chief executive officer Pepperfry told PTI.
“We are also looking to double the Pepperfry studios from 25 to over 50 by the end of the year, and the third area of work will be in the area of technology, on virtual and augmented reality to offer a virtual touch and feel experience,” he added.
The company is looking to enhance the private brand franchise in preparation for its next financial milestone of an initial public offering (IPO), the company said. Investment management firm State Street Global Advisors joins existing investors in Pepperfry like Norwest Venture Partners, Bertelsmann India Investments, Zodius Capital and Goldman Sachs.
With the current funding, Pepperfry has raised a total of over Rs1,200 crore since its launch six years ago. The company’s revenue has grown at a compounded annual rate of over 83% in the last five years. “With this fresh round of capital, we expect to reach the break-even point and turn profitable over the next 12-18 months,” said Murthy.